INDOT Contractor Prequalification.

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2 INDOT Contractor PrequalificationLocating Our WebsiteGo toOn the left, click on Doing Business with INDOTClick on Contractors/ConstructionClick on Contractors PrequalificationDirect link to the Contractors Prequalification webpage is at

4 INDOT Contractor PrequalificationContractor Prequalification InformationA few links of importance from the webpage:Rules for Prequalification of Contractors and Bidding (105 Indiana Administrative Code (IAC) 11)General Information on Prequalification and BiddingPrequalification Work Type Codes, which includes major work types and several specialty (4 digit) work types (These codes are not the same as the DBE and NAICS codes.)List of Prequalified ContractorsContractors Statement of Experience and Financial Condition (CR-1) (This is the application.)

5 INDOT Contractor PrequalificationContractor Prequalification InformationTo work as a prime contractor on INDOT projects or LPA projects let through INDOT, your company must be prequalified with INDOT. (Indiana Code ; 105 IAC (a))

6 Subcontractor InformationINDOT Contractor PrequalificationSubcontractor InformationSubcontractors can enter into subcontracts up to $300,000 without being prequalified with INDOT; however, the subcontractor is limited to a total of $300,000 in unearned work under contract on any given date with any owner, contractor, or other party. (Indiana Code ; 105 IAC )105 IAC (a) refers to a $100,000 contract limit; however, it was superseded by Indiana Code , which increased the limit to $300,000.The subcontractor contract and unearned work limits in 105 IAC do not apply to subcontractors providing professional services or hauling material or supplies to or from a job site.

7 Subcontractor Information- continuedINDOT Contractor PrequalificationSubcontractor Information- continuedINDOT may request disclosure of a subcontractor's board of directors, shareholders, officers, and principals prior to subcontract approval. Failure to disclose such information may result in denial of subcontract approval.All subcontracts must be approved by INDOT prior to work being performed by the subcontractor.Non-prequalified subcontractors need to provide a W-9 showing the company’s name, tax ID, and address to the Prequalification Section to be added to our database, before they can be approved to work on INDOT contracts.

8 INDOT Contractor PrequalificationUnearned WorkUnearned work is the amount of work contracted but not performed, and includes the value of items purchased and delivered, but not installed. (105 IAC )Unearned work includes work under contract with any owner, contractor, or other party. (105 IAC (g) and 105 IAC (a) )All contractors and subcontractors should keep track of their overall unearned work and unearned work by work type. Contractors list their unearned work when they submit a bid on a contract. INDOT may ask contractors to fill out Form CR-3, Current Contractual Obligations, to show unearned work.

9 Contractor Prequalification ApplicationINDOT Contractor PrequalificationContractor Prequalification ApplicationContractors that want to bid on projects let through INDOT and subcontractors that have more than $300,000 of unearned work will have to become prequalified with INDOT.We only accept hard copies of the application with original signatures.The following slides address some main points regarding the prequalification application and process.

10 INDOT Contractor PrequalificationContractor Prequalification Application ReferencesWe check references on new contractors. We send evaluation forms to the reference contacts listed on page 19 in the application. We will not prequalify a contractor until we have received three positive references back.Please include contact information on page 19, including the agency or company name, the full address, the contact person’s name, and their phone number.

11 INDOT Contractor PrequalificationContractor Prequalification Application ReferencesThe contact person’s evaluation ratings and comments will be kept confidential. We do not share the information with anyone, including the contractor applying for prequalification. (105 IAC (h))

12 Contractor Prequalification Application Financial StatementsINDOT Contractor PrequalificationContractor Prequalification Application Financial StatementsThere are three types of financial statements that can be submitted.A compiled or self-certified statement is considered unaudited and the prequalification capacity is limited to $200,000.*With a reviewed financial statement the capacity is limited to $1,000,000.With an audited financial statement the capacity is only limited to the amount determined by the equations in our Rules.*A prequalified contractor with a bidding capacity limited to $200,000 can still work as a subcontractor up to $300,000 of unearned work.

13 INDOT Contractor PrequalificationContractor Prequalification Application Financial StatementsAn audited or reviewed financial statement has to be certified by a Certified Public Accountant (registered in any state) or a Public Accountant (registered in Indiana). (Indiana Code ; 105 IAC )The accountant must sign the Certificate of Review or Certificate of Audit and include his/her license number on pp. 5 or 6 of the application, respectively.The Accountant’s Questionnaire on p. 4 of the application must be filled out for reviewed and audited statements.

14 Contractor Prequalification Application Financial ConditionINDOT Contractor PrequalificationContractor Prequalification Application Financial ConditionYour company’s financial condition is based on its current, fixed, and equipment assets and liabilities.The prequalification capacity equation is the sum of the following:10 times net current assets8 times net equipment assets, but limited to 1.5 times (1)2 times net fixed assets, but limited to 25% of (1) and (2)105 IAC (c)

15 Contractor Prequalification Application Financial ConditionINDOT Contractor PrequalificationContractor Prequalification Application Financial ConditionWe apply an experience reduction factor before setting the final aggregate bidding capacity. For new applicants we use a 30% reduction. We do not go below a 10% reduction unless the contractor has worked for INDOT for at least ten years. (105 IAC (k) & (m))

17 Contractor Prequalification Application Financial InformationINDOT Contractor PrequalificationContractor Prequalification Application Financial InformationInclude an aged receivable report. You can attach it to the application.Include notes payable, including terms and due dates.Include an equipment list detailed with book value or depreciation. You can attach it to the application. (105 IAC (i))

18 Contractor Prequalification Application Information for CorporationsINDOT Contractor PrequalificationContractor Prequalification Application Information for CorporationsFill out all of page 22 and have it notarized. We only accept applications with original signatures.Corporations need to submit their latest Minutes of Corporation with the application. We will not accept minutes more than three years old. (105 IAC (l))

19 Contractor PerformanceINDOT Contractor PrequalificationContractor PerformanceINDOT evaluates the contractor’s performance on every contract. INDOT also evaluates all subcontractors that do at least $10,000 of work on a contract. The evaluation form is called the CR-2. The CR-2’s are sent to the Prequalification Section and placed in the contractor’s file.If there are performance issues with a contractor, we may ask them to come before the Prequalification Committee.

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